From March 2020 the following rules were changed…
Periodic Lease Agreement (no fixed term or end of lease)
If the agreement does not specify a fixed-term or if the fixed-term period of the tenancy agreement has ended and is on a continuing (periodic) tenancy, then rent can only be increased once in a 12-month period.
The landlord must also give the tenant at least 60 days written notice before the increase starts. This also applies where the lease is being renewed.
Fixed Term Lease Agreement
For agreements with a fixed-term of less than 2 years, the landlord or agent can only increase the rent during the fixed-term if the agreement sets out the increased amount or how the increase will be calculated.
The term in the agreement must spell out the amount of the increase or the exact method of calculating the increase (e.g. a dollar amount or %). It cannot be unclear, for example statements ‘in line with the market’ or ‘by the rate of inflation’. The landlord or agent does not need to give the tenant written notice of the increase.
For agreements with a fixed-term of 2 years or more, the rent can only be increased once in a 12-month period. A landlord must also give the tenant at least 60 days written notice. It is important to note that a tenant can give 21 days written notice and vacate before the rent increase kicks in.
For more details contact our Property Management Department on 42951550.